On Thursday, Global Infrastructure Partners, the independent infrastructure investor that manages $75 billion in private market funds, announced that it is making a $245 million private equity investment in Easton Energy.
Easton is a Houston, Texas-based midstream energy company that develops infrastructure assets in support of the transportation, storage, and processing of natural gas liquids (NGL), refined products, and petrochemicals along the Gulf Coast. Easton’s assets include liquid hydrocarbon salt cavern storage facilities in Markham, Texas, and roughly 450 miles of pipelines that connect key product markets along the Texas and Louisiana Gulf Coast.
GIP is making the investment through its second flagship credit fund, Global Infrastructure Partners Capital Solutions Fund II (GIP CAPS II). The Easton investment marks the second commitment made by GIP CAPS II, which provides customized credit financings for infrastructure issuers in midstream energy, power, renewables, energy transition, transport and water/waste.
Proceeds from the investment will be used to fund the organic growth of Easton’s asset base and other strategic growth opportunities, with a tailored delayed draw structure to support both existing and future growth projects. Easton is currently backed by Cresta Fund Management, a growth-oriented, middle market-focused private equity firm that invests in sustainable and conventional energy, industrial, materials, and agricultural infrastructure.
In a statement announcing the investment on Thursday, GIP touted Easton’s management team for its “considerable experience in managing natural gas liquids and feedstock transportation and distribution services.”
“We are very pleased to have entered into this transaction with Easton and its sponsor, Cresta. Easton’s assets provide services that are core to its Gulf Coast midstream and petrochemical customers,” GIP Managing Director Denny Sreckovic said. “This investment exemplifies GIP’s ability to provide tailored financing solutions for high quality, critical infrastructure projects and partner with experienced management teams and sponsors.”
“We welcome this opportunity to partner with GIP, a leading infrastructure investor with experience in the midstream sector,” said Easton President and CEO Brad Ramsey. “GIP was able to tailor a Preferred Equity financing structure that optimally supports our continued growth capital needs and complements our existing capital structure. We view GIP as an important financial partner as Easton looks to continue its strategic infrastructure expansion.”
Last month, GIP acquired Saavi Energia, Mexico’s fourth-largest independent power producer and largest privately-held, standalone power producer, from sustainable infrastructure investor Actis.
